Frequently Asked Questions
What are the main differences in ownership types for foreigners?
Freehold: This allows for direct ownership in your own name, primarily available for condominiums where foreigners can own up to 49% of the building’s total floor space.
Leasehold: A long-term registered lease (usually 30 years with renewal options), which is the most common way for foreigners to hold land and villas.
Usufruct: A legal agreement that grants you the lifelong right to use a property or land owned by another; it is a powerful form of protection registered directly on the Title Deed (Chanote).
Superficies: A right that allows you to own the structures built upon someone else’s land, providing additional security when building a private villa on leased land.
What fees am I required to pay when purchasing property?
Transfer Fee: A fee for the transfer of ownership at the Land Office, typically 2% of the appraised value, often split 50/50 between the buyer and seller.
Leasehold Registration Fee: A fee for registering a lease at the Land Office, set at 1% of the total lease value.
Sinking Fund: A one-time contribution to the building’s reserve fund for major future repairs, paid upon the first transfer (e.g., 500 THB/sqm).
Common Area Fee (CAM Fee): A regular fee for the maintenance of the project’s facilities, pools, and security (e.g., 50 THB/sqm/month).
Business Tax / Stamp Duty: Taxes associated with the sale of the property, the rates of which depend on how long the seller has owned the asset.
How should I correctly handle the financial transaction?
Foreign Exchange Transfer (FET): For a Condominium Freehold purchase, funds must arrive in Thailand in a foreign currency as an investment; the bank then issues an FET form, which is mandatory for registration at the Land Office.
Escrow Account: We recommend using a protected account through a lawyer or bank, where funds are only released to the seller once the transfer of ownership is successfully completed at the Land Office.
Transparency of Costs: As part of our independent contract audit, we ensure all payment stages and deadlines are clearly defined and compliant with Thai law.
What should I avoid when handling money?
Never send a reservation fee without proper Due Diligence.
Avoid cash payments without an official receipt that is recognized by the Thai authorities.
Be cautious of “hidden” taxes that a seller might attempt to pass on to the buyer beyond their legal obligations.
How does REA Phuket assist with my finances and security?
Our partners perform a comprehensive Due Diligence to confirm the property is free of any debts, liens, or legal encumbrances.
We provide expert assistance in setting up Thai companies for property holding, along with ongoing accounting and tax advisory
We prepare and audit contracts to ensure your invested capital is protected at every stage of the process.
Still have a question?
If you cannot find an answer to your question in our FAQ, you can always contact us